For decades, life in the U.S. for the middle class has been built on the chase for the American Dream. And this ideal is made physical with homeownership. Whether working in a factory, in a doctor’s office, as a truck driver or as a programmer, the chase has been the same: save up enough to be eligible to own a home and become a property owner. In some respects, this chase has been around since the birth of the country. It was property owners who could vote and decide the very first direction of the colonies and ultimately the early U.S. It’s also an ideal that has been attractive to millions finding their way to American shores for a new life, a new opportunity and a better chance versus what they have at home. However, everything that involves a limited supply reaches saturation, and many argue that’s what has happened today, moving the “Dream” out of reach.
Generational Haves and Have-Nots
For those fortunate enough to have been part of the Boomer generation and right after, homeownership was still very possible even as the country was changing. However, by the time the 1990s arrived, housing prices start rising at a rate that easily outpaced normal salary gains. Then, with a Recession in 2009, a pandemic in 2020, and a labor market disruption in the 2020s, salaries and income have been falling behind for new generations coming into the working world. No surprise, Millennials and folks following have been heavily expressing their concern about being shut out of the housing market, and the media has picked up on the same as well, adding kerosene to the same anxiety. But is it really as bad as it seems? That depends.
Markets Make a Huge Difference
If a buyer is looking for a home in New York or California, then he or she has to be prepared to pay. These markets tend to be hyperinflated and rarely get into an affordable range now except for very remote rural areas. However, that doesn’t necessarily apply to the rest of the country. Colorado and many other states in the Midwest, for example, still have affordable markets and growing communities for new homeowners. Additionally, with resources like mortgage brokers from Rob’s Loans and similar help, many can find both affordable financing and lenders beyond just banks who are willing to help.
The Dream is Still Possible
So, no, the American Dream is not dead per se. It has changed and shifted. Like so many other social elements over the years, change rewrites the rules for how things work, and in home buying much of the shift has occurred geographically. Finding the right mix between viable income opportunity and home buying is the key, especially for those willing to relocate to take advantage of geographical differences in the economy.
